Bitcoin has seen a surge in the last day, with bulls aiming to reverse the recent market-wide sell-off as the cryptocurrency begins to push higher.
Where the next trend plays out will likely depend largely on whether or not bulls will be maintained the continuous uptrend as the weekly candle is rapidly approaching. Where this candle closes is likely to set the tone for the week ahead and provide insight into the macro outlook.
There are a few more crucial levels to overcome before Bitcoin can see significant further upward.
It is currently trading between a few key levels, and how it continues to respond to the selling pressure here will provide insight into its medium-term outlook.
A trader now notes that a break above resistance that is right above where it is currently trading could lay the groundwork for the benchmark cryptocurrency to see an explosive move higher soon.
However, a rejection here could stunt its growth and cause it to resume the downtrend that emerged after facing a rejection around its all-time high in the region of mid $ 19,000.
Bitcoin is struggling to gain momentum as selling pressure mounts
At the moment of writing, Bitcoin is trading just under 4% at the current price of $ 17,750. This marks a notable rise from the recent lows of $ 16,400 that were seen at the low end of the recent market-wide sell-off.
It also marks a notable rise from where it traded for the past day, with bulls previously struggling to break above USD 17,000.
If it can stay above this level and potentially navigate towards the USD 18,000 region, it could be a sign that there is even more upside for the entire market.
Analysts claim that the current price region is crucial to future outlook
A merchant explained in a recent tweet that Bitcoin’s response to the current price region will provide important insights into the near-term trend.
He points to the price area between USD 17,650 and USD 17,800 – where it is currently trading – as a “sticky area” that could slow its rise. This has proved correct so far.
BTC: Bitcoin is retesting $ 17,160 here and I want this level to go up. The next sticky area is around USD 17,650 to USD 17,800, which was previous support prior to the outage. Claim back there and I think that’s a nice start for the price considering it should probably move towards the mid-$ 18,000 mark. “
Image Courtesy of Josh Rager. Source: BTCUSD on TradingView.
Unless Bitcoin Faced with a harsh rejection around current price levels, there is a good chance that further upside potential is imminent in the near term.
Featured image from Unsplash. Charts from TradingView.